Albaraka Türk Katilim Bankasi (ALBRK) Q4 2025 earnings summary

Executive summary

• Achieved strong profitability in 2025, with solo-based net profit of TRY 13.2 billion, supported by a TRY 7 billion reversal of free provisions; underlying profit (excluding this one-off) was TRY 6.2 billion, up 43.3% year-on-year.

• Surpassed guidance with robust net profit, asset expansion, and improved asset quality.

• Maintained sector-leading profitability and efficiency despite tight monetary conditions and high inflation.

Financial highlights

• Net profit rose 206% year-on-year to TRY 13.2 billion, with Q4'25 net profit up 382% quarter-over-quarter.

• Total assets grew 50% year-on-year to TRY 466.4 billion; funded credits increased to 49.5% of assets and grew 60% to TRY 230.8 billion.

• Net profit share income rose 42% to TRY 10.6 billion; net fees and commission income up 48% to TRY 5 billion.

• Cost-to-income ratio improved to 37.0% in 2025 from 44.5% in 2024.

• Return on average equity (excluding provision reversal) was 29.9%; including it, 63.9%.

Outlook and guidance

• 2026 credit growth targeted at ~40%, with NPL ratio expected below 2.5%.

• Net profit share margin guidance for 2026 is 3.5% (swap-adjusted), or 4.5% including investment fund income.

• ROE guidance for 2026 maintained at 25%-30%.

• Special provision ratio guided at ~75% for 2026.

• Fee and commission growth expected to outpace inflation; OPEX growth to align with 2025 inflation (>30%).